Minings shoots past the 50-level on buoyant Bindura

Published: 24 June 2014

The Minings Index traded past the 50-level helping it recover from losses characteristic of the sector since the beginning of the year. The resources sector closed Tuesday's trades with a year to date gain of 13,74 percent from the January level of 45,79 percent.

Bindura Nickel Corporation sustained the gain on the index after it added 0,39c or 10,8 percent to 4c. The nickel producer is now up 100 percent this year, its highest price in two years and has a 52-week gain of 48,1 percent. The counter once traded at 30c.

Bindura expects higher profits for the second half of the year to March 31, due to improved production at Trojan Mine and favourable nickel prices. The miner managed to sell 100 percent of its production in the quarter ending March 31, with a 1,5 percent increase in the average nickel price received to $14 075 per tonne attained predominantly resulting from events in Indonesia where a ban on nickel exports was imposed on 12 January 2014.

Nickel prices opened the year at around $14 000 per tonne and are currently trading at $18 000 per tonne, after touching a high of $21 000 with indications abound that there could be higher prices going forward.

As a result of the gain in the share price, the minings index rose 7,23 percent to 52,08. RioZim was unchanged at 20c in trades worth $112.

Elsewhere the wider market was little changed paring a marginal 0,01c to 181,03. Trading was generally firm but there were significant losses from selected heavyweight counters.

TSL was the biggest faller losing 2c or 6,67 percent to 28c, Barclays shed 0,1c to 3,5c and Seedco dropped 1c to 70c.

Clothing retailer Truworths led the risers gaining 0,7c to 2,5c but is still down 40,48 percent in the year to date.

Mashonaland Holdings was 0,2c higher at 2,4c and Fidelity which expects to increase profitability through its Southview Park property development was 0,48c ahead to 8c.

Crocodile skin producer Padenga added 0,4c to 9c on market capitalisation of $48,74 million. CFI which is still to recapitalise its business was 0,03c ahead to 2,25c.

Innscor continued to firm gaining 0,5c to 77,5c in trades worth $66 040,08. Old Mutual put on 2,08c to 253c, Delta which has just expanded its business into drinking yoghurt was a marginal 0,01c up to 117,01c and BAT added 10c to 1 210c.
- The Herald